Prescious metals, particularly silver and gold have been utilized as money since the beginning of our civilization's monetary system. The introduction of fiat money, or currency that isn't backed by anything, has steadily devalued the purchasing power of all units of currency around the world. In the United States, the dollar ceased to be backed by gold in 1934. Luckily the silver standard was still in effect. This luck was short lived as it only lasted up to 1964. That is the last year our currency has had any true value. Compared to the early days of the U.S. dollar, it has been devalued 97 to 98 percent, which makes the current dollar equal to about three cents compared to it's 1800's value. Hence, a silver dollar sells for roughly $30.00 today.
How do you protect yourself from further devaluation and preserve your spending power? By investing in precious metals. Silver has out-performed gold in the recent years. In 2010 alone, silver has increased over 60 percent against the U.S. dollar while gold has only risen up to a 27 percent increase against the U.S. dollar. If you have a little extra money to invest, gold is at roughly $1385.00USD per ounce plus an added premium. This yellow precious metal serves as an excellent store of wealth. Since most people can ony afford to put aside a modest amount into savings, silver at $29.50USD plus an added premium, is much more attractive as an investment due to it's industrial demand and rarity. In my personal opinion, it is also more aesthetically pleasing to the eye .
It is also much easier and practical to save in precious metals. Why? You are more likely to think twice about why you are giving up your valuable precious metals investment for valueless paper. Secondly, although precious metals are quite volitile, during these times the returns are much more inviting than that of a regular savings account. Even high yielding account such as a CD or money market savings accounts have not out-performed precious metals in the recent years.. With this being said I wish you all Happy Investing! Oh, and Happy New Year as well!